Battery shortage to ease in Q3 2008

A fire at South Korea's LG Chem in March has crimped global supplies of lithium-ion batteries. The timing couldn't be worse. Demand for notebook computers is soaring this year as people turn to mobile computing and eschew desktops. Some companies, such as Asustek Computer, have already said the shortage will crimp their laptop PC shipments this year.

"I think maybe the battery shortage may hurt every brand," said J.T. Wang, chairman of Acer, at the company's investor conference two weeks ago.

But the head of the world's largest independent notebook battery maker, Simplo Technology, said he expects the lithium-ion supply to return to normal in the third quarter and allow battery makers to substantially increase production.

"The LG Chem problem has had a big impact on supplies, but we're working with customers and they understand," said Sung Fu-hsang, chairman of Simplo, at the company's first quarter investors' conference on Friday.

LG Chem could not be reached for comment.

The timing for a rebound in battery shipments couldn't be better for the industry. The third quarter is when sales of laptop PCs pick up as kids go back to school, and is followed by the peak-holiday sales season.

For now though, the problems mean a struggle for some companies.